Many middle-class people are turning to a special type of home loans called jumbo loans to purchase their first new home. Why? Well, in many areas of the country, the average cost of homes is significantly higher than the limits set by traditional lending products and government sponsored programs like FHA loans.
Home Loans
With the housing market improving in recent years, there are now more lenders offering jumbo loans. The minimum amount to jump up to a jumbo loan is currently $417,000. In today’s housing market, $417,000 for a home would be considered a bargain in certain areas, like in California, where average home prices in certain cities can be as much as $1 million!
Another recent change with jumbo loans is regarding the down payment. In the past, banks could easily require 30% down before they would even consider approving the loan. This is no longer the case, and some lenders only require as little as 10% down. You do not have to worry about private mortgage insurance with many of the lower down payment loan programs, too.
If you are shopping for your new home and prices push you into jumbo loan territory, it is worth your time to explore this mortgage option. To learn more about jumbo loans or assistance with finding the best loan program to buy or refinance your home, contact Elite Financial at (800) 908-LEND or (805) 494-9930 today!